India Market Monitor Q3 2025 – Industrial and Logistics

India’s industrial and logistics (I&L) real estate sector witnessed a notable growth in leasing activity, registering a 28% Y-o-Y increase in space take-up during the first nine months of 2025. Third-party logistics (3PL) and e-commerce companies continued to play a leading role in strengthening warehousing space absorption across cities. In the coming quarters, supply additions are expected to increase as numerous institutional investor-backed projects are nearing completion.

Building upon the robust leasing activity observed in the first nine months of 2025, we project continued positive momentum in warehousing demand for the coming quarter. This upbeat outlook is supported by an anticipated increase in festive season-led demand, the upcoming completion of investment-grade supply, and the finalisation of pending transactions. We expect the 3PL and e-commerce sectors to remain the primary drivers of space absorption, fuelled by their ongoing efforts to optimise supply chains and reduce delivery timelines.